ULIP Withdrawal Pending: What to Do Next

Reviewed on: 2026-05-30.

• Insurance Ombudsman
• Bima Bharosa
• IRDAI

• LIC maturity not paid or death claim repudiated: citizen ladder 2026

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When your ULIP (Unit Linked Insurance Plan) withdrawal or surrender is pending with the insurer, here is the complete guide:

1. Step 1: What is ULIP withdrawal? (a) ULIP is a life insurance product that combines insurance and investment (the premium is split: part goes to life cover, part goes to market-linked investment funds), (b) withdrawal/surrender means exiting the ULIP before maturity (you can withdraw after the 5-year lock-in period — or surrender partially/fully), © the insurer must process the withdrawal within the IRDAI-mandated timeline (typically 10-15 days of receiving all documents).
2. Step 2: Common delays. (a) document verification pending (the insurer says “documents under verification” — but does not specify what is missing or wrong), (b) fund value calculation dispute (the insurer calculates the fund value at a lower NAV — or on a different date than expected), © surrender charges dispute (the insurer deducts high surrender charges — reducing the payout significantly), (d) KYC mismatch (the insurer says the KYC does not match — PAN, Aadhaar, or bank details), (e) bank account verification (the insurer says the bank account could not be verified — delaying the NEFT/RTGS transfer), (f) no response (the insurer does not respond to emails, calls, or portal queries for weeks).
3. Step 3: How to follow up. (a) submit the withdrawal form (with: (i) original policy document, (ii) ID proof, (iii) cancelled cheque, (iv) bank account details, (v) surrender form), (b) get an acknowledgement (with the reference number and date — keep a copy), © follow up every 7 days (email + call + portal — keep records of each follow-up), (d) escalate within the insurer (first to the grievance officer — then to the Chief Grievance Officer), (e) demand a written status (the insurer must provide a written status — with the reason for delay and the expected date).
4. Step 4: File RTI. File RTI with the insurer (if PSU — e.g., LIC, UII) asking for: (a) the status of ULIP withdrawal request number [number] filed on [date] (policy number: [number], policyholder: [name]), (b) whether the withdrawal has been processed (if yes: provide the amount, date, and transaction reference — if no: the reason for delay), © the fund value as on [date] (the NAV and the number of units — with the date of calculation), (d) the surrender charges deducted (the amount and the basis — as per the policy terms), (e) whether the bank account has been verified (if not: the reason — and what is needed), (f) the grievance complaint history (the complaints filed and the responses given).
5. Step 5: IRDAI complaint. (a) file a complaint with IRDAI through the IGMS portal (bimabharosa.irdai.gov.in — the Integrated Grievance Management System), (b) the complaint should include: (i) the policy details, (ii) the withdrawal request details, (iii) the follow-up done (emails, calls — with dates), (iv) the insurer's response (or non-response), © IRDAI forwards the complaint to the insurer (and the insurer must respond within 15 days), (d) if the insurer does not resolve: IRDAI can take regulatory action (including penalty).
6. Step 6: Insurance Ombudsman. (a) file a complaint with the Insurance Ombudsman (the Ombudsman can settle claims up to Rs 50 lakhs — the process is free and does not require a lawyer), (b) the Ombudsman can: (i) order the insurer to process the withdrawal, (ii) order the insurer to pay the correct amount (with the correct NAV and surrender charges), (iii) award compensation for delay and harassment, © the Ombudsman's award is binding on the insurer (but not on the policyholder — the policyholder can go to court if unsatisfied).
7. Step 7: Consumer complaint. (a) file a complaint with the Consumer Disputes Redressal Commission (the delay is a deficiency of service — and the wrong calculation is an unfair trade practice), (b) the Commission can order: (i) the insurer to pay the withdrawal amount (with the correct NAV and charges), (ii) interest on the delayed amount (8-12% per annum), (iii) compensation for harassment (Rs 10,000-50,000), (iv) costs (Rs 10,000-25,000), © Example: Withdrawal Rs 5,00,000 + interest Rs 30,000 (6 months at 12%) + compensation Rs 25,000 + costs Rs 10,000 = Rs 5,65,000.

See ULIP Withdrawal and Find PIO.